Dear Tom, I am retired from stocks, well— not entirely, I do have a gold stock, AUY (Yamana Gold Inc.) and a few tiny high risk oil and energy producing companies.  I do not use PCA right now, Tom, I am 79 years of age, did that done that for years I do not want to spend time on research, stock picking as I did for years when I wrote my ‘Chipping’ monthly report. Yes, the PCA software is easy, just I do not want to bother, how many years have I got left?  Right now I have a ball with my eBay jewelry store and my Chipping from the rough! BLOG, those keeps me out of trouble but are zero pressure, now I can read a good book without having to constantly watch the market.

That said, I would be bloody damn careful right now, GM? General Motors seems they would like a government bail out, seems to me that you can find enough solid stocks, financially secure someplace to use PCA on.  I would take no chances in this environment, I may be wrong but I honestly think it is going to be awhile (a number of years) before Obama will get this mess straightened out.  I would stick with sound stocks, stocks that are beaten down but only because the market is down.  I would never invest in a stock now that is in financial trouble like GM, a solid stock, financially secure stock in this environment is enough risk. 

I haven’t looked at where they are or if they have been beaten down but if it were me I would check with experts like Investment Systems as they have some good programs in markets like this or I would look at stocks that usually handle this kind of market well like good solid gold stocks I liked AUY because they have a huge undeveloped proven area yet un-mined.  Also stocks like Costco, Wal-Mart, etc, look at their financial statements, make sure that even if sales or profits are down that the company you want to do a Position Cost Averaging program on is still in the black.  Hey, all stocks during these times will move up and down enough for PCA to function successfully.

Of course this is just what I would do.  Maybe you get more conservative as you get older, could be, I just feel that this mess Bush made is just starting, I would not stick my neck too far out on my own, as stated if I wanted to trade daily, wanted the action I would only do it with professionals like Investment Systems as they have the computers, the software to teach you and advise you in markets like this. 

This may not be the advise you want, but I think it is good advise, times like this are like quick sand you darn well better look where you step.

Your ooooooooold buddy, Uncle Fred